Number of results to display per page
Search Results
302. Recovery: The Global Financial Crisis and Middle-Income Countries
- Author:
- Alejandro Foxley
- Publication Date:
- 07-2009
- Content Type:
- Working Paper
- Institution:
- Carnegie Endowment for International Peace
- Abstract:
- No country has proved immune to the devastating effects of the current global financial crisis. But the middle-income countries of Eastern Europe, Latin America, and East Asia, which previously had achieved significant progress—economically and socially— have shown themselves to be particularly vulnerable. The crisis has high- lighted important lessons for these countries, which inhabit a twilight zone between the developed and developing worlds –and those that aspire to join their ranks – as they rebuild
- Topic:
- Economics, Globalization, Markets, and Financial Crisis
- Political Geography:
- Europe, East Asia, and Latin America
303. What lessons from the 1930s?
- Author:
- Daniel Gros and Cinzia Alcidi
- Publication Date:
- 05-2009
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- This paper explores three areas in which the experience of the Great Depression might be relevant today: monetary policy, fiscal policy and the systemic stability of the banking system. We confirm the consensus on monetary policy: deflation must be avoided. With regard to fiscal policy, the picture is less clear. We cannot confirm a widespread opinion according to which fiscal policy did not work because it was not tried. We find that fiscal policy went to the limit of what was possible within the confines of sustainability, as they existed then. Our investigation of the US banking system shows a surprising resilience of the sector: commercial banking operations (deposit-taking and lending) remained profitable even during the worst years. This suggests one policy conclusion: At present the authorities in both the US and Europe have little choice but to make up for the losses on 'legacy' assets and wait for banks to earn back their capital. But to prevent future crises of this type, one should make sure that losses from the investment banking arms cannot impair commercial banking operations. At least a partial separation of commercial and investment banking thus seems justified by the greater stability of commercial banking operations.
- Topic:
- Economics, Markets, and Financial Crisis
- Political Geography:
- United States and Europe
304. The Effect of the Financial Crisis on Systemic Trust
- Author:
- Felix Roth
- Publication Date:
- 07-2009
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- The financial crisis had a significant impact on the levels of trust that citizens place in the system and its institutions. Recent data from Eurobarometer show a significant fall in confidence on the part of European citizens in the EU's institutions. For the first time since its creation, a majority of European citizens no longer trust the European Central Bank. However, confidence levels in national governments have actually risen, supporting a contrasting trend between confidence levels in European and national institutions. This decrease in confidence towards the ECB is flanked in the case of Germany by strong anti-capitalist sentiments and a sharp decline in support for the social market economy.
- Topic:
- Economics, Markets, and Financial Crisis
- Political Geography:
- Europe and Germany
305. Ottoman De-Industrialization 1800-1913: Assessing the Shock, Its Impact and the Response
- Author:
- Jeffrey G. Williamson and Şevket Pamuk
- Publication Date:
- 02-2009
- Content Type:
- Working Paper
- Institution:
- Weatherhead Center for International Affairs, Harvard University
- Abstract:
- India and Britain were much bigger players in the 18th century world market for textiles than was Egypt, the Levant and the core of the Ottoman Empire, but these eastern Mediterranean regions did export carpets, silks and other textiles to Europe and the East. By the middle of the 19th century, they had lost most of their export market and much of their domestic market to globalization forces and rapid productivity growth in European manufacturing. Other local industries also suffered decline, and these regions underwent de-industrialization as a consequence. How different was Ottoman experience from the rest of the poor periphery? Was de-industrialization more or less pronounced? Was the terms of trade shock bigger or smaller? How much of Ottoman de-industrialization was due to falling world trade barriers—ocean transport revolutions and European liberal trade policy, how much due to factory-based productivity advance in Europe, how much to declining Ottoman competitiveness in manufacturing, how much to Ottoman railroads penetrating the interior, and how much to Ottoman policy? The paper uses a price-dual approach to seek the answers. It documents trends in export and import prices, relative to each other and to non-tradables, as well as to the unskilled wage. The impact of globalization, European productivity advance, Ottoman wage costs and policy are assessed by using a simple neo-Ricardian three sector model, and by comparison with what was taking place in the rest of the poor periphery.
- Topic:
- Economics, Globalization, International Trade and Finance, and Markets
- Political Geography:
- Britain, Europe, Turkey, India, and Egypt
306. Russian outward FDI and its policy context
- Author:
- Andrei Panibratov and Kalman Kalotay
- Publication Date:
- 10-2009
- Content Type:
- Working Paper
- Institution:
- Columbia Center on Sustainable Investment
- Abstract:
- Outward foreign direct investment (OFDI) from Russia often surprises outside observers by its landmark deals. One of them was the purchase in September 2009 of a 55% stake in General Motors' German affiliate Opel by a consortium of the Canadian car maker Magna and the Russian state-owned bank Sberbank. The latter is the largest creditor of the Russian car maker GAZ, and may represent its commercial interests in the contract. With this deal, Russia has bought into the industrial heartland of the world economy and could potentially access more advanced technology. This acquisition hints at the growth of Russian OFDI in general, which has prospered despite fears in many host countries that the investors are subject to Russian political interference, a fear that recently announced Russian policy intentions may allay.
- Topic:
- Economics, International Trade and Finance, Markets, and Foreign Direct Investment
- Political Geography:
- Russia, Europe, and Asia
307. OEF Commentary on Avian Flu
- Publication Date:
- 01-2009
- Content Type:
- Working Paper
- Institution:
- Oxford Economics
- Abstract:
- OEF has regularly provided scenario assessments of the economic impact of a wide range of risks to the global outlook from financial market volatility to banking crises to country studies to threats arising from less economy-based disturbances such as earthquake damage and the impact of health scares like the UK's foot and mouth outbreak and Asia's SARS attack of 2003.
- Topic:
- Economics, Globalization, Health, and Infectious Diseases
- Political Geography:
- Europe and Asia
308. Leaders and laggards, on the way down and up
- Publication Date:
- 10-2009
- Content Type:
- Working Paper
- Institution:
- Oxford Economics
- Abstract:
- With the economies of most countries having passed their troughs, it is a good time to take stock of some of the main features of the crisis so far and to assess what the upturn may look like. In this article, we look back at how the different countries have fared in this crisis and how monetary and fiscal authorities have responded to the crisis. We then turn to the nascent recovery to compare and contrast the upturn across countries. Finally, we highlight some of the main legacies of this crisis. Exposure to financial services, housing booms, consumer debt and trade with the US were seen as factors that would make some countries suffer deeper downturns than others. In the event, the downturn has surprised by how quickly it has spread across countries. So the most affected countries turned out to be the most exposed to the world economy such as Germany, Italy, Japan and Eastern Europe. All major central banks have responded with aggressive cuts in interest rates and adopted wide-ranging unconventional measures. This has helped stabilise financial markets, but the goal of getting credit flowing to the non-financial economy has not yet been achieved. Governments have also responded to the crisis with large fiscal stimulus packages. These packages have helped contain the collapse in activity and contributed to some countries exiting the recession in 2009Q2. Whether these packages will be enough to get the world economy back on a sustainable growth path is still uncertain though. Beyond the short term, where fiscal stimulus and the stock cycle will boost growth, the recovery is expected to be sluggish and bumpy in most places. History suggests that recoveries from financial crises tend to be slower than others, and the repair of household and corporate balance sheets will be a drawn out process. In addition, with large amounts of spare capacity around the world, demand for investment will be weak for some time to come. Furthermore, the nascent upturn has already put pressure on oil and commodity prices. If this continues, it will hamper growth in net importer economies. These factors will combine with country-specific features that determine their potential growth. We forecast the recovery to be most drawn out in Italy, Japan and Germany as these countries are hit by weak demand for investment goods and are characterised by relatively low potential growth. One main legacy of this crisis is the likelihoo d of years of fiscal austerity, to bring public deficits back under control. Another legacy may be in changes to the regulation of financial services, although do date little progress has been made in this area. In addition, EMU has so far proved a resilient entity during the crisis, so that the euro could gain a more prominent role on the world stage, depending on how it fares in the upturn.
- Topic:
- Economics, Globalization, and Markets
- Political Geography:
- Japan, Europe, Germany, and Italy
309. Eurozone Unity Under Threat?
- Publication Date:
- 03-2009
- Content Type:
- Working Paper
- Institution:
- Oxford Economics
- Abstract:
- Ten years after the introduction of the euro, the onset of deep recession in the Eurozone has triggered concern that the single currency might impose intolerable strains upon some members. With some countries hit hard by the impact of the credit crunch, there are mounting concerns about a possible debt default by one or more member states, which in turn might threaten the euro and even the existence of the Eurozone. With the Eurozone economy forecast to contract by 3.1% this year, unemployment is starting to climb steeply and fiscal deficits are soaring. This has raised concerns about deteriorating public finances in a number of countries, leading to sharply wider spreads on government bonds and credit rating downgrades for Greece, Spain and Portugal, with Ireland maybe facing a similar fate soon. And repercussions from the growing economic crisis in Central and Eastern Europe are adding to the problem, with Austria particularly exposed. Rising bond spreads were always intended to be the mechanism that would restrain public spending by more profligate Eurozone countries. But the question now is whether the weaker economies can withstand the strains that a lengthy period of recession will impose and, at the same time, adopt credible medium-term spending plans to ward off the worst of the downturn and retain market confidence. With fiscal deficits already rising as a result of bank bailouts, fiscal packages and recession will push budget deficits far above the 3% of GDP target – Ireland, facing a deficit of 12% of GDP, and Spain will be worst hit. And with rising deficits and higher bond spreads pushing up the cost of debt, countries face a sharp rise in their level of indebtedness, with Greece and Italy seeing debt/GDP ratios around 100%. This deterioration could lead to a further downward spiral if the recession is prolonged and will be a test of countries' euro commitment, which has remained strong thus far despite rising social tensions in some countries. At this stage, the problems remain manageable and the risk of default or of countries leaving the euro is still very low. Bond spreads are still much lower than during much of the 1990s, when countries were striving to qualify for euro membership, and the currency risks attached to leaving the euro would be substantial. Moreover, EU countries that have been exposed to considerable currency strain over the past year are anxious to join the Eurozone as soon as possible, to take advantage of the benefits of a stable currency. While some smaller countries may experience financial difficulties, it seems inevitable that the larger Eurozone members would step in to stabilise the situation – failure to do so would risk contagion spreading to other countries, which in turn would cause even deeper problems for the euro. More policy action also seems likely to counter this threat – although the German government will probably remain reluctant to countenance the scale of expansionary fiscal policy really needed at this time. Current policies inevitably mean a long hard slog back towards fiscal rectitude in the years ahead, with monetary policy also tightening and growth slower than previously expected. Fiscal federalism may also have to be on the agenda. All this will undoubtedly lead to ongoing strains within the Eurozone. And any measures by governments that appear to be protectionist – such as the support for the French car industry – will only fuel these tensions.
- Topic:
- Economics, International Trade and Finance, Regional Cooperation, Treaties and Agreements, and Financial Crisis
- Political Geography:
- Europe and Germany
310. The economic contribution of ports to the UK economy
- Publication Date:
- 03-2009
- Content Type:
- Working Paper
- Institution:
- Oxford Economics
- Abstract:
- Ports are vital for the health of the UK economy and the movement of its population. They are gateways into the UK for trade and travel. Over 95% of UK imports and exports by volume and 75% by value pass through the country's ports. In terms of tonnage handled, the UK ports sector is the largest in Europe. In 2007, UK ports handled 580 million tonnes of freight. In 2007, 24.8 million international sea passengers went through UK ports. Nearly three quarters of journeys were to France. Another 14 per cent were to the Republic of Ireland. In 2007, 24.2 million domestic sea passengers traveled between ports in the UK. Sea crossings comprised 4.0 million of these journeys. Inter island journeys the remaining 20.2 million. Of which 10.7 million trips were between Hampshire and Isle of Wight and 8.0 million between the Scottish islands.
- Topic:
- Economics and International Trade and Finance
- Political Geography:
- United Kingdom and Europe
311. An Indispensable Relationship: Economic Linkages between the UK and the rest of the European Union
- Publication Date:
- 02-2009
- Content Type:
- Working Paper
- Institution:
- Oxford Economics
- Abstract:
- Business for New Europe has requested Oxford Economics to undertake a study detailing the economic ties between the UK and the rest of the European Union (EU), and where possible, quantify them according to a number of parameters such as trade, labour force, tourism, FDI, portfolio investments and banking linkages. In the context of the current economic situation, there is a growing need for increased economic integration and cooperation between partner countries. Therefore, it is particularly relevant to review the importance of the economic links between the UK and the rest of the EU. These inter-relations have come to the fore since the outbreak of the financial crisis. Analysing the impact of the credit crunch on UK-EU relations is not within the scope of this report.
- Topic:
- Economics, International Trade and Finance, Markets, and Regional Cooperation
- Political Geography:
- United Kingdom and Europe
312. The Economic Outlook for London
- Publication Date:
- 10-2009
- Content Type:
- Working Paper
- Institution:
- Oxford Economics
- Abstract:
- The present recession, which had its origins in the global financial crisis that began to unfold in mid-2007, has hit London's economy hard. And in the face of ongoing financial sector constraints, a debt overhang and rising unemployment, a strong bounce in the immediate future – of the kind seen in the wake of the early1990s recession – cannot be realistically expected. Nevertheless, Oxford Economics' forecasts show the recovery in the capital gaining traction by 2011, with growth into the medium term matching the robust performance of the decade prior to the recession. We expect growth over the period 2011-2019 to outstrip that of the rest of the UK and of most comparable cities across the western world.
- Topic:
- Economics and Financial Crisis
- Political Geography:
- United Kingdom, Europe, and London
313. The interpolar world: a new scenario
- Author:
- Giovanni Grevi
- Publication Date:
- 06-2009
- Content Type:
- Working Paper
- Institution:
- European Union Institute for Security Studies
- Abstract:
- Everyone agrees the world is changing. The question is in which direction? This paper offers an original contribution to the debate on the future shape of the international system. Based on a diagnosis of current developments, it argues that many factors point to the emergence of an 'interpolar' world. Interpolarity can be defined as multipolarity in the age of interdependence. The redistribution of power at the global level, leading to a multipolar international system, and deepening interdependence are the two basic dimensions of the transition away from the post-Cold War world. All too often, however, they are treated as separate issues. The real challenge lies in finding a new synthesis between the shifting balance of power and the governance of interdependence.
- Topic:
- International Relations, Cold War, Economics, and International Cooperation
- Political Geography:
- United States and Europe
314. Brazil and the Transatlantic Community in the Wake of the Global Crisis
- Author:
- Thomas J Trebat
- Publication Date:
- 06-2009
- Content Type:
- Working Paper
- Institution:
- Institute for Latin American and Iberian Studies at Columbia University
- Abstract:
- As the great global crisis eases its grasp, it is a time to reconsider relations between Brazil and the North, especially the United States and the European Union. While the world economy is still reeling, it is very possible that a new and more productive period in Brazil's relations with the US and Europe is possible. This positive outcome derives from numerous factors, most especially Brazil's “peaceful rise” to a more prominent global role and the arrival of the Obama administration whose promise of a new beginning in U.S. foreign policy has been greeted with such evident enthusiasm in Latin America.
- Topic:
- International Relations, Foreign Policy, Development, Economics, International Political Economy, and Financial Crisis
- Political Geography:
- United States, Europe, Brazil, and Latin America
315. Belgian Country Report
- Author:
- Bryan Groves
- Publication Date:
- 11-2009
- Content Type:
- Working Paper
- Institution:
- Department of Social Sciences at West Point, United States Military Academy
- Abstract:
- A number of important geopolitical events in the last three decades, Belgium's membership in the EU and its adoption of the Euro, along with its domestic responses have impacted recent developments in its economy. The nation has been marked by an increasing Real GDP, a balanced budget, a CA surplus, improved terms of trade, decreased openness, high unemployment, an ageing population, a pending social security crisis, and a contractionary fiscal and monetary policy meant to keep inflation low and increase national savings to avoid a social security disaster.
- Topic:
- Economics and International Trade and Finance
- Political Geography:
- Europe
316. The Blueprint: A History of Dubai's Spatial Development Through Oil Discovery
- Author:
- Stephen J. Ramos
- Publication Date:
- 11-2009
- Content Type:
- Working Paper
- Institution:
- Belfer Center for Science and International Affairs, Harvard University
- Abstract:
- To understand Dubai's modern history since its founding in 1833, one must go further back in time to explore the regional history that frames its foundation. European powers, beginning with the Venetians, and, then subsequently, the Portuguese, the Dutch, and finally the British, were interested in the Gulf region as a means to secure trade routes to and from the Indian Subcontinent and points eastward. This meant that from the fifteenth century through the late nineteenth century, if trade routes could move uninterrupted through the Gulf region, European powers were not involved in the societal affairs of settlements as a traditionally colonial ruling class, nor did European merchants bother to extensively explore trade within the region, believing that it required more effort than either the climate or the local economies were worth. The region's local tribes were divided among the maritime coastal groups and those that were nomadic and land-bound, and conflict among these groups occurred in parallel with the larger European conflicts also playing out in the region. The intersection of the two came with the increase in piracy, which, in very basic terms, represented a kind of cultural disagreement on trade customs. The Europeans felt that they were unjustly looted and local groups simply sought to protect themselves from foreign incursion while taking what they believed was their share. Historians still debate this issue today, but in relation to Dubai, the piracy of the times serves as an example of how looser understandings of the licit and illicit, particularly in terms of trade, could be capitalized upon as business venture. The smuggling of gold, weapons, and other goods throughout Dubai's history may have been seen as illicit from perspectives outside Dubai's ports, but the merchant-friendly environments of these ports and the adherence to local autonomy allowed them to trade freely.
- Topic:
- Economics, International Trade and Finance, and Oil
- Political Geography:
- Europe, India, Arabia, and Dubai
317. The Double Asymmetry of European Integration Or: Why the EU Cannot Be a Social Market Economy
- Author:
- Fritz W. Scharpf
- Publication Date:
- 11-2009
- Content Type:
- Working Paper
- Institution:
- Max Planck Institute for the Study of Societies
- Abstract:
- Judge-made law has played a crucial role in the process of European integration. In the vertical dimension, it has greatly reduced the range of autonomous policy choices in the member states, and it has helped to expand the reach of European competences. At the same time, however, “Integration through Law” does have a liberalizing and deregulatory impact on the socioeconomic regimes of EU member states. This effect is generally compatible with the status quo in liberal market economies, but it tends to undermine the institutions and policy legacies of Continental and Scandinavian social market economies. Given the high consensus requirements of European legislation, this structural asymmetry cannot be corrected through political action at the European level.
- Topic:
- Economics, Markets, and Regional Cooperation
- Political Geography:
- Europe
318. Italy: the uneasy co-existence of different social models
- Author:
- Marino Regini and Sabrina Colombo
- Publication Date:
- 01-2009
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- The “European social model” includes a welfare regime with generous social expenditure; high employment or income protection; a well-developed system of industrial relations; and involvement of social partners in policymaking. Within the Italian social model, however, one can find three major dividing lines. The first one stems from the coexistence of different models in different areas of the country. Second, an occupation-based principle in pensions and in unemployment benefits coexists with a citizenship-based one in health and education. Finally, core workers enjoy high job and income security, whereas outsiders are highly dependent on the market. These three dividing lines substantially endanger the legitimacy and social acceptance of the Italian social model: each of them profoundly affects the perceptions of workers and citizens, leading to widespread criticism of even those aspects that clearly benefit them and, at the same time, to fierce opposition to the several attempts at reforming it.
- Topic:
- Economics, Government, Political Economy, and Privatization
- Political Geography:
- Europe and Italy
319. Recovery: The Global Financial Crisis and Middle-Income Countries
- Author:
- Alejandro Foxley
- Publication Date:
- 07-2009
- Content Type:
- Working Paper
- Institution:
- Carnegie Endowment for International Peace
- Abstract:
- No country has proved immune to the devastating effects of the current global financial crisis. But the middle-income countries of Eastern Europe, Latin America, and East Asia, which previously had achieved significant progress—economically and socially—have shown themselves to be particularly vulnerable. The crisis has highlighted important lessons for these countries, which inhabit a twilight zone between the developed and developing worlds?and those that aspire to join their ranks—as they rebuild.
- Topic:
- Economics, International Trade and Finance, Monetary Policy, and Financial Crisis
- Political Geography:
- Europe, East Asia, and Latin America
320. The value of power, the power of values: a call for an EU Grand Strategy
- Author:
- Sven Biscop (ed.)
- Publication Date:
- 10-2009
- Content Type:
- Working Paper
- Institution:
- European Centre for Minority Issues
- Abstract:
- In its 2003 European Security Strategy (ESS), the EU has a grand strategy, embracing all instruments and resources at the disposal of the Union and the Member States, but a partial one. The ESS tells us how to do things – in a preventive, holistic and multilateral way – but it is much vaguer on what to do: what are the concrete objectives and priorities of the EU as a global actor?
- Topic:
- Economics, Emerging Markets, International Political Economy, International Trade and Finance, and Regional Cooperation
- Political Geography:
- Europe
321. Impact of Non-smoking Ordinances on Hospitality Revenues: The Case of Germany
- Author:
- Gabriel Ahlfeldt and Wolfgang Maennig
- Publication Date:
- 06-2009
- Content Type:
- Working Paper
- Institution:
- Chair for Economic Policy, University of Hamburg
- Abstract:
- Non-smoking ordinances are among the most popular albeit controversial public health-care legislations worldwide. This article provides an empirical assessment of the impact of non-smoking ordinances on bar and restaurant revenues in German Federal States. By application of panel spline regression and difference-in-difference strategies, we find negative impact limited to bars in the very short run. If any, there is a positive impact on total expenditures in the long run, indicating that either consumption pattern has not changed at all or that any reduction in spending by smokers is compensated for by a corresponding increase by non-smokers. These findings support the German – and similar – non-smoking legislations in the sense that positive externalities resulting from reduced health care cost are likely to outweigh the risk to businesses in the hospitality sector, at least in the long run.
- Topic:
- Economics, Public Health, and Revenue
- Political Geography:
- Europe and Germany
322. Multilateralism beyond Doha
- Author:
- Arvind Subramanian and Aaditya Mattoo
- Publication Date:
- 10-2008
- Content Type:
- Working Paper
- Institution:
- Peterson Institute for International Economics
- Abstract:
- A fundamental shift is taking place in the world economy to which the multilateral trading system has failed to adapt. The Doha process focused on issues of limited significance while the burning issues of the day were not even on the negotiating agenda. The paper advances five propositions: (1) the traditional negotiating dynamic, driven by private-sector interests largely in the rich countries, is running out of steam; (2) the world economy is moving broadly from conditions of relative abundance to relative scarcity, and so economic security has become a paramount concern for consumers, workers, and ordinary citizens; (3) international economic integration can contribute to enhanced security; (4) addressing these new concerns-relating to food, energy, and economic security-requires a wider agenda of multilateral cooperation, involving not just the World Trade Organization but other multilateral institutions as well; and (5) despite shifts in economic power across countries, the commonality of interests and scope for give-and-take on these new issues make multilateral cooperation worth attempting.
- Topic:
- Security, Economics, International Trade and Finance, Treaties and Agreements, and World Trade Organization
- Political Geography:
- United States, China, and Europe
323. The challenge of measuring inflation...when business is not as usual
- Author:
- Cecilia Frale and Jørgen Mortensen
- Publication Date:
- 10-2008
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- The recent surge in commodity prices and the European Central Bank's decision in June to raise interest rates to combat inflation have ignited a debate about the appropriateness of raising interest rates during a phase of weakening activity. In addition, it is relevant to examine the approaches to measuring the rate of inflation, to consider the advantages and drawbacks of these methods, and finally to throw new light on the possible influence of monetary policy on the fundamental trends in prices.
- Topic:
- Economics and Foreign Exchange
- Political Geography:
- United States and Europe
324. Germany and Globalization
- Author:
- Daniel S. Hamilton and Joseph P. Quinlan
- Publication Date:
- 11-2008
- Content Type:
- Working Paper
- Institution:
- Center for Transatlantic Relations
- Abstract:
- Globalization is changing all of our lives as the pace of economic interdependence grows between developed and emerging countries. Debate thrives about whether globalization has been good or bad for European consumers, workers, companies and governments and what are the prospects in the future. In a dynamic and uncertain world currently beset by a global financial crisis and a looming recession can Europe act to take advantage of the opportunities created by globalization and mitigate its challenges?
- Topic:
- International Relations, Economics, Globalization, and International Trade and Finance
- Political Geography:
- Europe and Germany
325. France and Globalization
- Author:
- Daniel S. Hamilton and Joseph P. Quinlan
- Publication Date:
- 06-2008
- Content Type:
- Working Paper
- Institution:
- Center for Transatlantic Relations
- Abstract:
- Globalization is changing all of our lives as the pace of economic interdependence grows between developed and emerging countries. Debate thrives about whether globalization has been good or bad for European consumers, workers, companies and governments and what are the prospects in the future. In a dynamic and uncertain world can Europe act to take advantage of the opportunities created by globalization and mitigate its challenges?
- Topic:
- Economics, Globalization, International Trade and Finance, and Markets
- Political Geography:
- America, Europe, and France
326. Regional Inequality and Convergence in Europe, 1995 – 2005
- Author:
- Arne Melchior
- Publication Date:
- 11-2008
- Content Type:
- Working Paper
- Institution:
- Norwegian Institute of International Affairs
- Abstract:
- The paper presents new results on within-country regional inequality in per capita income for 36 countries during 1995-2005; focusing on Europe but with some non-European countries included for comparison. In 23 of the 36 countries there was a significant increase in regional inequality during the period, and in only three cases there was a reduction. Regional inequality increased in all countries of Central and Eastern Europe, while for most Western European countries there was little change. For the EU-27 as a whole, there was a modest increase in within-country regional inequality, but convergence across countries. The latter effect was quantitatively more important, so on the whole there was income convergence in the EU-27, especially after 2000. Regional inequality is particularly important for some large middle-income countries such as China, Russia and Mexico. In such countries there may however be considerable price differences across regions, and the use of common price deflators for the whole country may lead to a biased assessment of regional inequality.
- Topic:
- Economics, Political Economy, Social Stratification, and Sociology
- Political Geography:
- Russia, China, Europe, and Mexico
327. East-West Integration and the Economic Geography of Europe
- Author:
- Arne Melchior
- Publication Date:
- 12-2008
- Content Type:
- Working Paper
- Institution:
- Norwegian Institute of International Affairs
- Abstract:
- Implementation of the European internal market and East-West integration has been accompanied by a dramatic change in the spatial distribution of economic activity, with higher growth west and east of a longitude degree through Germany and Italy. In the east, income growth has been accompanied by increasing regional disparities within countries. We examine theoretically and empirically whether European integration as such can explain these developments. Using a numerical simulation model with 9 countries and 90 regions, theoretical predictions are derived about how various patterns of integration may affect the income distribution. Comparing with reality, we find that a reduction in distance-related trade costs combined with east-west integration is best able to explain the actual changes in Europe's economic geography. This suggests that the implementation of the European internal market or the Euro has “made Europe smaller”. In Central Europe, the dominance of capital regions tends to eliminate east-west growth differences inside countries. There is no convincing support for the hypothesis that European integration had adverse effects on non-members.
- Topic:
- Economics, Markets, and Political Economy
- Political Geography:
- Europe
328. The Internationalization of Firms in the Service Industries: Channels, Determinants and Sectoral Patterns
- Author:
- Fulvio Castellacci
- Publication Date:
- 12-2008
- Content Type:
- Working Paper
- Institution:
- Norwegian Institute of International Affairs
- Abstract:
- The paper presents the results of a new survey on the international activities of Norwegian enterprises in various service industries. The survey focuses on three main internationalization channels: international sales, international cooperation and R outsourcing. The empirical analysis studies the relevance of these channels, and investigates the related strategies, objectives and determinants. International sales and collaborations emerge as the two most relevant channels, whereas the scope for R outsourcing seems to be far more limited. The analysis of the determinants of international activities suggests three main results: (1) the innovative capability of firms matters for their international performance; (2) the various internationalization channels seem to be complement, rather than substitute, strategies to compete in foreign markets; (3) sectoral specificities greatly affect firms' internationalization strategies and performance.
- Topic:
- Economics, International Trade and Finance, and Markets
- Political Geography:
- Europe
329. Remapping Inequality in Europe: The Net Effect of Regional Integration on Total Income Inequality in the European Union
- Author:
- Jason Beckfield
- Publication Date:
- 06-2008
- Content Type:
- Working Paper
- Institution:
- Weatherhead Center for International Affairs, Harvard University
- Abstract:
- Research on the determinants of inequality has implicated globalization in the increased income inequality observed in many advanced capitalist countries since the 1970s. Meanwhile, a different form of international embeddedness — regional integration — has largely escaped attention. Regional integration, conceptualized as the construction of international economy and polity within negotiated regions, should matter for inequality. This paper offers theoretical arguments that distinguish globalization from regional integration, connects regional integration to inequality through multiple theoretical mechanisms, develops hypotheses on the relationship between regional integration and inequality, and reports fresh empirical evidence on the net effect of regional integration on inequality in Western Europe. Three classes of models are used in the analysis: (1) time-series models where region-year is the unit of analysis, (2) panel models where country-year is the unit of analysis, and (3) analysis of variance to identify how the between- and within-country components of income inequality have changed over time. The evidence suggests that regional integration remaps inequality in Europe. Regionalization is associated with both a decrease in between-country inequality, and an increase in within-country inequality. The analysis of variance shows that the net effect is negative, and that within-country inequality now comprises a larger proportion of total income inequality.
- Topic:
- Economics, Globalization, and Social Stratification
- Political Geography:
- Europe
330. The US Housing Bust and Soaring Oil Prices: What next for the world economy?
- Author:
- Daniel Gros and Cecilia Frale
- Publication Date:
- 06-2008
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- This paper estimates the impact of the ongoing housing bust and oil price boom on the US and European economies. It finds that large house price movements (changes in construction investment) are useful to predict exceptionally bad and good times for the US economy, but not for most large European countries. In Europe housing market developments have led to extreme values of GDP, mainly in the UK, Spain and some Nordic countries.
- Topic:
- Economics and Oil
- Political Geography:
- United States and Europe
331. Finance and the Macro-economy: The Politics of Regulatory Reform in Europe
- Author:
- Sofía Perez and Jonathan Westrup
- Publication Date:
- 01-2008
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- This paper analyzes major changes in the regulation of the financial sector in Europe over the last three decades. Focusing on the pattern of change across five countries (Britain, France, Germany, Italy and Spain), the paper identifies two major periods of regulatory change: first, the shift away from postwar patterns of credit regulation in the 1970s and 1980s, and second, the intensification of state supervisory powers and the introduction of new regulatory structures from the 1990s to the present. In both cases, the authors point to the way in which different models of financial sector regulation affect the political consequences of macro-economic policy for political elites as an explanation for choices that governments have made in the regulatory arena. More specifically, while regulatory change in the first period may be largely explained by the way in which different postwar models of credit regulation impinged upon a government's political ability to impose disinflation, choices in favor of different regulatory structures in the second period (single regulator in Britain and Germany versus multiple regulators in the other countries) can be related to differences in the area of pension reform. By focusing on the political implications that different modes of financial regualtion can have for elected officials in the context of different macroeconomic scenarios, the authors offer an explanation of regualtory change that differs from accounts which emphasize the primacy of financial market forces in driving such change.
- Topic:
- Economics and Government
- Political Geography:
- Britain, Europe, France, Germany, Spain, and Italy
332. Ripples in a Rising Tide: Why Some EU Regions Receive More Structural Funds Than Others Do
- Author:
- Thilo Bodenstein and Achim Kemmerling
- Publication Date:
- 01-2008
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- We investigate the distribution of European Union (EU) Structural Funds across EU regions. We draw from literature concerning the political economy of national intergovernmental grants, and regarding the EU's two-tiered bargaining process. Bargaining over the distribution of Structural Funds takes place between regions and their respective national governments, but is also influenced by bargaining that occurs on an intergovernmental level. We test our claims with a data set containing the distribution of Objective-1 and Objective-2 funds across EU regions, as well as other economic, institutional and electoral variables. Adjusting for selection bias, we find that the official allocation criteria are not sufficient determinants for explaining the distribution of regional transfers. For Objective-2 they may even be said to bear the opposite sign. Moreover, federalist regions and those with stronger electoral competition receive significantly more transfers than other regions.
- Topic:
- Economics and Political Economy
- Political Geography:
- Europe
333. Uncertainty and the Market for Patents
- Author:
- Irene Troy and Raymund Werle
- Publication Date:
- 07-2008
- Content Type:
- Working Paper
- Institution:
- Max Planck Institute for the Study of Societies
- Abstract:
- Modern societies regard knowledge as a production factor in its own right. The market is the prevailing governance mode of their economies, and it is supposed to be the most appropriate mode of trading and allocating knowledge assets, too. But socio-economic research has revealed that knowledge markets are far from functioning smoothly. Building on ongoing qualitative research into patent trading we suggest that the emergence of a well-functioning market for patented new technological knowledge is confronted with several obstacles, which can be characterized as different facets of uncertainty. They are included in the process of creation of innovative knowledge, in its transformation into a fictitious knowledge commodity (patent), in its uniqueness, in the strategy of transaction partners, in the estimation of the future market potential of final products (based on the patent), and generally in the problem of incomplete and asymmetric information. Also a commonly accepted method of determining a patent's value is missing. We analyze structural and organizational responses to the problem of uncertainty. Potential traders often rely on contractual options, especially licensing agreements, and complementary procedural principles facilitating the trade of patents.
- Topic:
- International Relations, Economics, and Markets
- Political Geography:
- Europe
334. Unemployment and Unemployment Protection in Transition
- Author:
- Wayne Vroman and Vera Brusentsev
- Publication Date:
- 04-2008
- Content Type:
- Working Paper
- Institution:
- Urban Institute
- Abstract:
- Nearly twenty years have passed since the transition from a centrally-planned towards a market-oriented economy in the countries of Central and Eastern Europe and the Former Soviet Union (CEE-FSU). This paper documents the differing patterns of unemployment during the period 1990 to 2006 in the 28 countries that constitute the CEE-FS U group and outlines how unemployment protection programs developed in response. We also suggest some tentative explanations for the observed trends in unemployment and unemployment compensation. Our approach is novel in that we compare the performance of the CEE-FSU group to the worldwide average and to other major economies. In addition, we demonstrate important contrasts across the CEE-FSU sub-regions.
- Topic:
- Economics
- Political Geography:
- Russia, Europe, Eastern Europe, Asia, and Soviet Union
335. Der kollektive "Buddenbrooks-Effekt"
- Author:
- Christoph Deutschmann
- Publication Date:
- 05-2008
- Content Type:
- Working Paper
- Institution:
- Max Planck Institute for the Study of Societies
- Abstract:
- The paper views the current financial crisis in light of long-term structural socioeconomic changes in advanced industrial societies. In Western Europe, the United States and Japan, the period of economic prosperity after the Second World War led to a remarkable accumulation of wealth among the middle class that had surprisingly little effect on the substantial fortunes of the wealthiest upper class. This affluence gave rise to pension and investment funds emerging as a new type of collective actor in global financial markets, while the economy was marked by increasing instability, declining growth rates and financial crises. The paper tries to clarify the interconnections between these phenomena using the framework of a multilevel analysis that culminates in a model I call the “collective Buddenbrooks effect” (“Buddenbrooks” being a family saga by Thomas Mann): Structural upward social mobility will lead to an increasing imbalance in capital markets, since the volume of financial assets looking for profitable investment will rise as the social reservoir of solvent debtors and promising investment opportunities decline. Advanced industrial economies are thus characterized by a bias towards capital export and excessive financial liquidity, with the well-known consequences of low economic growth rates and the danger of speculative bubbles on global capital markets. The middle class that originally benefitted from postwar prosperity is negatively affected, too. I argue that the current crisis cannot be understood sufficiently without taking this structural socioeconomic background into account.
- Topic:
- Economics, International Political Economy, International Trade and Finance, Political Economy, and Political Theory
- Political Geography:
- United States, Japan, and Europe
336. The Post-2010 Lisbon Process: The Key Role of Education in Employment and Competitiveness
- Author:
- Daniel Gros and Felix Roth
- Publication Date:
- 12-2008
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- This paper points out that education should be the central objective of the post-2010 Lisbon Process. Compared to other OECD countries, the member states of the European Union perform poorly when it comes to key indicators of innovative potential, such as the percentage of students enrolled in tertiary education and the educational quality of Europe's students. Education makes a three-fold contribution to a country's economic health. First it is beneficial for employment rates, second it is a key driver for long-term economic growth and third it appears to be beneficial for social cohesion. It will be crucial for European countries to attain higher levels of tertiary education and increase the quality of their education.
- Topic:
- Economics, Education, and Regional Cooperation
- Political Geography:
- Europe and Lisbon
337. The Nordic Path of Spain's Mediterranean Welfare
- Author:
- Luis Moreno
- Publication Date:
- 01-2008
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- Despite the fact that the Nordic welfare model has become less exceptional in recent times, it continues to offer numerous examples for “best practices” in social policy provision, together with a high degree of welfare political legitimacy. This paper explores Nordic “benchmarking” as reference to the case of welfare development in Spain. In the general process of convergence of the European welfare states towards the middle, the Spanish case stands out as the one Mediterranean EU country which has gone further in incorporating inputs and traits of the social-democratic Nordic world of welfare capitalism. While Spain's welfare state has become more liberal in macroeconomic policies, and social policymaking has followed a pattern of universalization of welfare entitlements and provision, there has been a detachment from the Bismarckian principle of income maintenance. This paper deals with Spain's evolution in two main areas, which have distinctively characterized Nordic welfare in contemporary times: fiscal resources, and female employment. The analytical purpose of the first section is to ponder the claim as to whether or not Spanish welfare has intensified a socioeconomic path in the direction of the Nordic model. Subsequently, Spain's societal changes and welfare reforms are reviewed with relation to the two areas identified as having the greatest impact in the future evolution of Spain's welfare: conciliation of work and family life, and the territorial politics of welfare provision. Concluding remarks speculate on the hypothesis that countries with fragmented political institutions and a decentralized state organization, such as Spain, may move faster and be more responsive in the development of new welfare Polices. Likewise, the emergence of gender and family issues into the political arena is also regarded as generating pressure for major changes in Spain's Mediterranean welfare, and possibly intensifying its Nordic path or component.
- Topic:
- Security, Economics, Markets, Migration, and Poverty
- Political Geography:
- Europe and Spain
338. Hawk and handsaws: What can France learn from the "Nordic Model"?
- Author:
- Éloi Laurent and Jean-Paul Fitoussi
- Publication Date:
- 01-2008
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- In this paper, we try to point out some important weaknesses of the contemporary French social-economic model, focusing on relevant elements of comparison with Nordic countries. In doing so, we rely on the idea that large and small countries differ in terms of growth and governance strategies. Hence, while a look at the “Nordic model” can be a good way to reveal of some of France's major problems, it is also an ambiguous template for reform. The paper starts by examining the question of growth strategy (macroeconomic management and structural reforms), then goes on to investigate governance strategy (trust, confidence, governance quality) and finally explores the issues of diversity and integration policy.
- Topic:
- Economics, Markets, Political Economy, and Political Theory
- Political Geography:
- Europe
339. Technological Regimes, Schumpeterian Patterns of Innovation and Firm Level Productivity Growth
- Author:
- Fulvio Castellacci and Jinghai Zheng
- Publication Date:
- 03-2008
- Content Type:
- Working Paper
- Institution:
- Norwegian Institute of International Affairs
- Abstract:
- The paper investigates the relationships between technological regimes and firm-level productivity performance, and it explores how such a relationship differs in different Schumpeterian patterns of innovation. The analysis makes use of a rich dataset containing data on innovation and other economic characteristics of a large representative sample of Norwegian firms in manufacturing and service industries for the period 1998-2004. First, we decompose TFP growth into technical progress and efficiency changes by means of data envelopment analysis. We then estimate an empirical model that relates these two productivity components to the characteristics of technological regimes and a set of other firm-specific factors. The results indicate that: (1) TFP growth has mainly been achieved through technical progress, while technical efficiency has on average decreased; (2) the characteristics of technological regimes are important determinants of firm-level productivity growth, but their impacts on technical progress are different from the effects on efficiency change; (3) the estimated model works differently in the two Schumpeterian regimes. Technical progress has been more dynamic in Schumpeter Mark II industries, while efficiency change has been more important in Schumpeter Mark I markets.
- Topic:
- Economics and Science and Technology
- Political Geography:
- Europe and Norway
340. Labor Regulations and European Industrial Specialization: Evidence from Private Equity Investments
- Author:
- Ant Bozkaya and William R. Kerr
- Publication Date:
- 05-2008
- Content Type:
- Working Paper
- Institution:
- Belfer Center for Science and International Affairs, Harvard University
- Abstract:
- European nations empirically substitute between employment protection regulations and labor market expenditures like unemployment insurance benefits in the provision of labor market insurance to workers. While perhaps substitutes from a worker's perspective, employment regulations more directly tax .firms making frequent labor force adjustments. These labor adjustments are especially important for the portfolio companies of both venture capital and buy-out investors. European nations providing worker insurance through labor market expenditures developed stronger domestic private equity markets over the 1990-2004 period than those nations favoring employment protection. These patterns are further evident in US-sourced private equity investments into Europe. Moreover, tests for industry specialization suggest that countries with more flexible labor markets tend to specialize in sectors characterized by high labor volatility. These results are relevant to the literatures examining the impact of labor market regulations on entrepreneurship and productivity growth due to reallocations across .firms and sectors.
- Topic:
- Economics, Industrial Policy, and Markets
- Political Geography:
- United States and Europe
341. Financial Impacts of Climate Change: Implications for the EU Budget
- Author:
- Christian Egenhofer, Arno Behrens, and Jorge Núñez Ferrer
- Publication Date:
- 08-2008
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- This study focuses on the financial resources needed to fight global climate change and the implications for the EU budget. The authors apply four different methodologies to estimate global financing requirements and attempt to determine the resources that will be needed at the EU level to meet the EU's climate change objectives. The study analyses current climate change spending of the EU budget, identifies shortcomings and indicates possibilities for correcting them. It also assesses the potential of the EU emissions trading scheme to raise additional resources to finance coordinated actions at the EU level aimed at fighting climate change. Finally, it provides three case studies of national public expenditure related to climate change in Germany, the United Kingdom and the United States.
- Topic:
- Climate Change, Economics, and Environment
- Political Geography:
- United States, United Kingdom, and Europe
342. At What Cost Price Stability? New evidence about the Phillips Curve in Europe and the United States
- Author:
- Daniel Gros and Andrea Beccarini
- Publication Date:
- 09-2008
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- With inflation increasing all over the world, central banks have to consider with some care how quickly to re-establish price stability. A key issue in this context is the short-run cost in terms of foregone output and higher unemployment. The aim of this paper is to determine the 'sacrifice ratio' for the Euro Area and for the United States. The main findings are: the cost of reducing inflation is in most cases higher in the US than in the EA. For example, reducing (headline) inflation by 1% point requires a decline of output of 1.4% in the EU, but 2.3% for the US. Considering core inflation, the sacrifice ratio in terms of output is somewhat higher for the Euro Area (around 4) compared to 3.2 for the US. However, the sacrifice ratios in terms of unemployment are always much larger for the US. Reducing headline inflation by 1% requires an increase in unemployment of little more than 1% in the EA, compared to 8% in the US.
- Topic:
- Economics and Foreign Exchange
- Political Geography:
- United States and Europe
343. Emerging Market Business Cycles with Remittance Fluctuations
- Author:
- Ceyhun Bora Durdu and Serdar Sayan
- Publication Date:
- 09-2008
- Content Type:
- Working Paper
- Institution:
- Board of Governors of the Federal Reserve System
- Abstract:
- This paper analyzes the implications of remittance fluctuations for various macroeconomic variables and Sudden Stops. The paper employs a quantitative two-sector model of a small open economy with financial frictions calibrated to Mexican and Turkish economies, two major recipients, whose remittance receipts feature opposite cyclical characteristics. We find that remittances dampen the business cycles in Mexico, whereas they amplify the cycles in Turkey. Their quantitative effects in the long run, approximated by the stochastic steady state are mild. In the short run, however, remittances have quantitatively large impacts on the economy, when the economy is borrowing constrained. This is because agents in the economy cannot adjust their precautionary wealth to sudden tightening in credit, hence, fluctuations in remittances get magnified through an endogenous debt-deflation mechanism. Our findings suggest that procyclical (or countercyclical) remittances can play a significant deepening (or mitigating) role for Sudden Stops.
- Topic:
- Debt, Economics, and Credit
- Political Geography:
- Europe, Turkey, Asia, North America, and Mexico
344. Investment in Stadia and Regional Economic Development – Evidence from FIFA World Cup 2006
- Author:
- Arne Feddersen, André L. Grötzinger, and Wolfgang Maennig
- Publication Date:
- 10-2008
- Content Type:
- Working Paper
- Institution:
- Chair for Economic Policy, University of Hamburg
- Abstract:
- Using the case of the new stadiums for the FIFA World Cup 2006 in Germany, this paper is the first multivariate work that examines the potential income and employment effects of new stadiums outside of the USA. This study is also the first work on this topic that conducts tests on the basis of a (serial correlation consistent) Difference-in-Difference model with level and trends. As a robustness check, we use the “ignoring time series information” model in a form that is modified for nonsynchronous interventions. We were not able to identify income or employment effects of the construction of new stadiums for the FIFA World Cup 2006, which are significantly different from zero.
- Topic:
- Development, Economics, Infrastructure, Sports, Regional Economy, and Stadiums
- Political Geography:
- Europe and Germany
345. Monument Protection: Internal and External Price Effects
- Author:
- Gabriel Ahlfeldt and Wolfgang Maennig
- Publication Date:
- 04-2008
- Content Type:
- Working Paper
- Institution:
- Chair for Economic Policy, University of Hamburg
- Abstract:
- This paper analyses the impact of heritage-listed buildings on condominium transaction prices in Berlin, Germany. We use transaction data to test for price differentials between listed and nonlisted properties and to study their impact on surrounding property prices. Proximity to built heritage is captured by distance to listed houses and indicators capturing neighborhoods with built heritage. Impact is assessed by applying a hedonic model to micro-level data and a non-parametric approach to location. While our findings suggest that listed properties do not sell at a premium or discount, heritage-listed buildings are found to have positive external effects on surrounding property prices.
- Topic:
- Economics, Culture, Heritage, and Real Estate
- Political Geography:
- Europe, Germany, and Berlin
346. The Feel-good Effect at Mega Sports Events. Recommendations for Public and Private Administration Informed by the Experience of the FIFA World Cup 2006
- Author:
- Wolfgang Maennig and Marcel Porsche
- Publication Date:
- 02-2008
- Content Type:
- Working Paper
- Institution:
- Chair for Economic Policy, University of Hamburg
- Abstract:
- One of the most important social effects of the 2006 football World Cup was the feel-good effect. The present contribution is one of the first to deal with the development of a general theory for the management of feel-good effects and systematically analyses the influencing factors taking the 2006 World Cup as an example. Of importance are suitable basic organizational and infrastructure conditions in the realms of security, transport, and ecology. The media activities of public and private sponsors should break away from the traditional narrow focus and classic brand sponsoring in favor of a more socially responsible sponsoring. Sporting success of the home team is important, which may be due in equal measures to the style of play of the team and its demeanor. The creation of generally accessible participation opportunities through free TV in the host country and the setting up of fan festivals can counteract any frustration that might arise from the allocation of ad-mission tickets. Any targeted manipulation of the weather may be considered with due regard to possible ecological implications.
- Topic:
- Economics, Sports, Media, and World Cup
- Political Geography:
- Europe and Germany
347. Danish Foreign Policy Yearbook 2007
- Author:
- Nanna Hvidt and Hans Mouritzen
- Publication Date:
- 05-2007
- Content Type:
- Working Paper
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- This is an outline of Danish foreign policy 2006 provided by the Permanent Secretary of State for Foreign Affairs. Throughout 2006, developments caused by globalisation posed huge challenges to Denmark. The cartoons crisis and the conflict in Lebanon were the most obvious ones. Confronted with these challenges, Denmark managed to pursue a pro-active foreign policy. Interrelated issues such as energy security, climate change, failed states and weapons of mass destruction became increasingly important. These issues must be addressed with different instruments ranging from diplomacy and multilateral cooperation to trade policy and development cooperation. They illustrate the need for new tools in foreign policy such as public diplomacy, which has gained further importance in the globalised and network-based system of international relations. In addition, the need for horizontal coordination has increased. The Danish Ministry of Foreign Affairs issued a major globalisation study in 2006, recommending how Denmark can cope with the challenges of globalisation.
- Topic:
- International Relations, Development, and Economics
- Political Geography:
- Europe and Denmark
348. Non-Working Time, Income Inequality, and Quality of Life Comparisons: The Case of the U.S. vs. the Netherlands
- Author:
- Ellen Verbakel and Thomas DiPrete
- Publication Date:
- 12-2007
- Content Type:
- Working Paper
- Institution:
- Institute for Social and Economic Research and Policy at Columbia University
- Abstract:
- The distribution of well-being in society and comparisons of well-being across societies depend both on the amount of inequality at the national level and also on the national average level of well-being. Comparisons between the U.S. and western Europe show that inequality is greater in the U.S. but that average GDP/capita is also greater in the U.S., and most Americans have higher standards of living than do Western Europeans at comparable locations in their national income distributions. What is less well-known is that (depending on the country) much or all of this gap arises from differences in the level of working hours in the U.S. and in Western Europe. Cross-national comparisons of well-being have typically relied on the methodology of generalized Lorenz curves (GLC), but this approach privileges disposable income and cash transfers while ignoring other aspects of welfare state and labor market structure that potentially affect the distribution of well-being in a society. We take an alternative approach that focuses on the value of time use and the different distributions of work and family time that are generated by each country's labor market and social welfare institutions. We show that reasonable estimates of the greater contribution to well-being from non-market activities such as the raising of children or longer vacations overturn claims in the literature that the U.S. offers greater well-being to more of its citizens than do Western European countries.
- Topic:
- Economics, Markets, and Political Economy
- Political Geography:
- United States, Europe, and Netherlands
349. A New Phase of European Integration:Organized Capitalisms in Post-Ricardian Europe
- Author:
- Armin Schäfer and Martin Höpner
- Publication Date:
- 03-2007
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- In the past, economic integration in Europe was largely compatible with the persistence of different national varieties of capitalism. While product market integration intensified competition, member states could build on and foster their respective comparative advantage. To date, this no longer unequivocally holds true. We contend that a new, 'Post-Ricardian' phase of European integration has emerged in which the Commission's and the ECJ's attempts to further economic integration systematically challenge the institutions of organized capitalism. This quest for liberalization has reached a point at which its output legitimacy is increasingly uncertain. As a result, the de-politicization of EU decisions proves increasingly unsuccessful. In addition, liberalization measures rely on a very generous interpretations of the 'four freedoms' that exceeds the amount of liberalization the member states agreed upon in the European treaties and, therefore, lacks input legitimacy. We show this by discussing recent struggles over the Services Directive, the Takeover Directive, and company law. In the current phase of European integration, the Commission's and the ECJ's liberalization attempts either transform the institutional foundations on which some of the member states' economic systems rely or they create political resistance to an extent that calls into question the European project. The case studies reveal evidence for both of these possibilities.
- Topic:
- Development and Economics
- Political Geography:
- Europe
350. The European Commission as Network Broker
- Author:
- Susana Borrás
- Publication Date:
- 03-2007
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- Recent transformations in the European Union have been putting significant pressure on the management function of the European Commission. Examining its brokerage position in policy networks, this article asks what kind of role does the Commission have in the political interactions in Brussels after the year 2000. Developing a conceptual framework about brokerage roles in EU policy, the article uses a combination of quantitative and qualitative data in an empirical analysis of two very different cases where the Commission has been embattled the past years. The article argues that previous reports of the Commission's demise are much exaggerated, because it continues playing a leading role in managing interaction between multiple actors at different levels of governance. The empirical results show that the Commission is a resilient central network broker.
- Topic:
- Development, Economics, and Government
- Political Geography:
- Europe
351. Corporate Values in Local Contexts Work Systems and Workers' Welfare in Western and Eastern Europe
- Author:
- Marta Kahancová
- Publication Date:
- 03-2007
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- Increased international competition poses challenges to companies' organizational practices, including human resource management. For multinational companies operating simultaneously in diverse local conditions this challenge implies a decision between either opting for universal best practices or adapting their employment strategy to differing local standards in host countries. What influences whether work practices are similar or differ when deployed in differing conditions? Why are some companies committed to their workers' welfare while others are not? This paper attempts to answer these questions by studying work practices, namely work systems and fringe benefits, in a Dutch multinational company (MNC) and its manufacturing subsidiaries in Western and Eastern Europe. Evidence suggests that the observed patterns are best explained by the interplay of three factors. Rational economic interest, company values, and local institutions yield subsidiary work practices that are embedded in, but not adapted to, local standards. The MNC's value system accounts for the fact that generous benefits are offered without a direct relation to the company's profit maximization and without external societal and institutional pressures to provide such benefits.
- Topic:
- Development, Economics, and Human Welfare
- Political Geography:
- Europe
352. Taxation and Democracy in the EU
- Author:
- Steffen Ganghof and Philipp Genschel
- Publication Date:
- 02-2007
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- Is corporate tax competition a threat to democracy in the EU? The answer depends crucially on a positive analysis of the effects of tax competition on national policy autonomy. Most analyses focus on direct effects on corporate tax rates and revenues. We contend that this focus is too narrow. It overlooks the fact that corporate tax competition also has important indirect effects on the progressivity and revenue-raising potential of personal income taxation. We elaborate on these indirect effects theoretically and empirically, and explore the implications for the normative debate on the EU's democratic deficit. Our findings show that European integration can constrain national redistribution in a major way: the democratic deficit is real. Greater political contestation over the EU's policy agenda is desirable in order to mitigate this deficit.
- Topic:
- Democratization, Development, and Economics
- Political Geography:
- Europe
353. Crony Capitalism and Democracy: Paradoxes of Electoracompetition in Russia's Regions
- Author:
- Gulnaz Sharafutdinova
- Publication Date:
- 02-2007
- Content Type:
- Working Paper
- Institution:
- Kellogg Institute for International Studies
- Abstract:
- The phenomenon of crony capitalism has been explored primarily with reference to its impact on economic growth. This study investigates the political implications of crony capitalism and, specifically, the interaction between political competition and crony capitalism. Based on a case study of political trajectories in two regions of the Russian Federation, I argue that under crony capitalism political competition can undermine the legitimacy of state authorities and such democratic institutions as the electoral mechanism. Played out in public during electoral campaigns, unrestricted political competition uncovers the predatory nature of crony elites engaged in struggle for power and wealth. Paradoxically, the electoral process itself gets discredited as an essential part of the overall institutional order in the process. Noncompetitive political systems avoid such negative tendencies, at least in the short run.
- Topic:
- Democratization and Economics
- Political Geography:
- Russia and Europe
354. European Banks in the Developing World
- Author:
- Jan Toporowski
- Publication Date:
- 10-2007
- Content Type:
- Working Paper
- Institution:
- School of Oriental and African Studies - University of London
- Abstract:
- This paper looks at the recent expansion of European banks in the developing countries. It argues that no specific European influence is apparent in emerging markets, other than a declining financial interest in former colonies. Actual developments in emerging markets are determined by domestic factors, financial liberalisation, and capital account liberalisation. The sole exception is provided by monetary unions of France and Portugal with former colonies. These highlight the drying up of local money markets as local banking becomes a branch activity of global banks. This is a paradoxical result, since financial liberalisation is usually supposed to result in financial development. It also suggests financial liberalisation may not be the best way of supporting the under-banked small and medium enterprise sector in developing countries.
- Topic:
- Development, Economics, and International Political Economy
- Political Geography:
- Europe
355. Non-Working Time, Income Inequality and Quality of Life Comparisons: The Case of the U.S. vs. the Netherlands
- Author:
- Ellen Verbake and Thomas A. DiPrete
- Publication Date:
- 06-2007
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- The distribution of well-being in society and comparisons of well-being across societies depend both on the amount of inequality at the national level and also on the national average level of well-being. Comparisons between the U.S. and western Europe show that inequality is greater in the U.S. but that average GDP/capita is also greater in the U.S., and most Americans have higher standards of living than do Western Europeans at comparable locations in their national income distributions. What is less well-known is that (depending on the country) much or all of this gap arises from differences in the level of working hours in the U.S. and in Western Europe. Crossnational comparisons of well-being have typically relied on the methodology of generalized Lorenz curves (GLC), but this approach privileges disposable income and cash transfers while ignoring other aspects of welfare state and labor market structure that potentially affect the distribution of well-being in a society. We take an alternative approach that focuses on the value of time use and the different distributions of work and family time that are generated by each country's labor market and social welfare institutions. We show that reasonable estimates of the greater contribution to well-being from non-market activities such as the raising of children or longer vacations overturn claims in the literature that the U.S. offers greater well-being to more of its citizens than do Western European countries.
- Topic:
- Economics
- Political Geography:
- United States, America, Europe, and Netherlands
356. A Statistical Analysis of the Quality of Impact Assessment in the European Union
- Author:
- Caroline Cecot, Robert Hahn, and Andrea Renda
- Publication Date:
- 05-2007
- Content Type:
- Working Paper
- Institution:
- The Brookings Institution
- Abstract:
- In 2002, the European Union required that an impact assessment be done for all major initiatives, including many regulations, directives, decisions, and communications. This paper is the first paper to statistically analyze these impact assessments using the largest available dataset. As a benchmark, we compare our results in the EU with recent results on the quality of regulatory analysis in the U.S. We score impact assessments using a number of objective measures of quality, such as whether a particular assessment provides any quantitative information on costs or benefits, and use the scores to develop two indices of quality.
- Topic:
- Economics, Government, and International Trade and Finance
- Political Geography:
- Europe
357. Abkhazia: Ways Forward
- Publication Date:
- 01-2007
- Content Type:
- Working Paper
- Institution:
- International Crisis Group
- Abstract:
- Fourteen years of negotiation, led alternately by the UN and Russia, have done little to resolve the Georgian-Abkhaz conflict. There have been some successes on the ground: ceasefire violations are rare, approximately 45,000 internally displaced (IDP) Georgians have returned to homes in the Gali region, the two sides cooperate on operating the Inguri power plant, and a strategic railway through Abkhazia may restart. But the sharp deterioration in Russian-Georgian relations and a Georgian military adventure in the Kodori valley have contributed to a freeze in diplomacy over Abkhazia since mid-2006. In the absence of a new initiative, new violence is a real possibility. Because prospects are bleak for an early comprehensive settlement of the key political issues, in particular final status, the sides and international facilitators should shift their focus in 2007 to building confidence and cooperation in areas where there are realistic opportunities.
- Topic:
- Security, Economics, and United Nations
- Political Geography:
- Russia, Europe, Asia, Georgia, and Abkhazia
358. Corporate Values in Local Contexts: Work Systems and Workers' Welfare in Western and Eastern Europe
- Author:
- Marta Kahancová
- Publication Date:
- 02-2007
- Content Type:
- Working Paper
- Institution:
- Max Planck Institute for the Study of Societies
- Abstract:
- Increased international competition poses challenges to companies' organizational practices, including human resource management. For multinational companies operating simultaneously in diverse local conditions this challenge implies a decision between either opting for universal best practices or adapting their employment strategy to differing local standards in host countries. What influences whether work practices are similar or differ when deployed in differing conditions? Why are some companies committed to their workers' welfare while others are not? This paper attempts to answer these questions by studying work practices, namely work systems and fringe benefits, in a Dutch multinational company (MNC) and its manufacturing subsidiaries in Western and Eastern Europe. Evidence suggests that the observed patterns are best explained by the interplay of three factors. Rational economic interest, company values, and local institutions yield subsidiary work practices that are embedded in, but not adapted to, local standards. The MNC's value system accounts for the fact that generous benefits are offered without a direct relation to the company's profit maximization and without external societal and institutional pressures to provide such benefits.
- Topic:
- Economics, Government, and Political Economy
- Political Geography:
- Europe
359. Nigeria: Elections and Continuing Challenges
- Author:
- Robert I. Rotberg
- Publication Date:
- 04-2007
- Content Type:
- Working Paper
- Institution:
- Council on Foreign Relations
- Abstract:
- Nigeria's vital importance for Africa's political development, for U.S. and European interests, and for world order cannot be exaggerated. Nigeria's sheer aggregate numbers—possibly as many as 150 million of the full continent's 800 million—and its proportionate weight in sub-Saharan Africa' s troubled affairs, make the country's continuing evolution from military dictatorship to stable, sustained democracy critical.
- Topic:
- Democratization and Economics
- Political Geography:
- Africa, Europe, and Nigeria
360. Bubbles in real estate? A Longer-Term Comparative Analysis of Housing Prices in Europe and the US
- Author:
- Daniel Gros
- Publication Date:
- 10-2007
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- The downturn in the US housing market has attracted a lot of attention as it has sparked a global financial crisis. It is generally assumed that the eurozone does not face a similar problem. This paper shows that this assumption is wrong. The euro area average index of real housing prices has risen almost as much as that of the US and is now (as that of the US) about 40% above its 30-year average. This is similar to the overvaluation of Japanese real estate at the height of the Japanese bubble, which was then followed by over a decade of continuous decline. Over the last 30 years, the euro area index for real housing prices has tended to follow that of the US quite closely. The lag is now much shorter than in the 1970s or 1980s. The euro area market is thus likely to turn soon as well. One feature of housing price cycles that tends to be forgotten is their extraordinary length: many last for more than ten years. This persistence means that the downswing, which now seems to have started, is likely to last at least until the next decade. Within the euro area, there are large divergences: cases of 'froth' (Spain, for example) co-exist alongside cases of declining prices (Germany). These divergences have persisted for over a decade and have led to important macroeconomic disequilibria. The paper also develops an indicator of 'housing overhang', which shows by how much demand for new construction has to decline to bring the supply of housing back to normal levels. This indicator suggests that there is virtually no housing overhang in the eurozone on average and that it is of a manageable magnitude in the US. Spain and Ireland, however, face a massive housing overhang and thus probably a sharp deceleration of construction demand.
- Topic:
- Economics and Markets
- Political Geography:
- United States and Europe
361. Legal Immigration: Time for Europe to Play its Hand
- Author:
- Stefano Bertozzi
- Publication Date:
- 02-2007
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- The European Commission has recently rekindled the debate about a possible future ruling on economic immigration, including the conditions and procedures for entry and residence, the principle of Community preference and the rights of third-country workers.The purpose of this paper is to recapitulate the main phases of Community action in the area of legal migration for economic reasons, starting with the political mandate given to the European Commission by the Tampere European Council. It moves on to outline the EU's current legislative programme to introduce policy instruments in 2007–09 for regulating the migration of specific categories of workers, some of which are aimed at easing the entry of highly skilled workers. It underscores the case for cohesive EU action in this controversial area in view of the need to improve the economic competitiveness of the EU and the risks posed by its ageing population.
- Topic:
- International Relations, Economics, and Migration
- Political Geography:
- Europe
362. Making and Unmaking Money: Economic Planning and the Collapse of East Germany
- Author:
- Jonathan R. Zatlin
- Publication Date:
- 04-2007
- Content Type:
- Working Paper
- Institution:
- Institute of European Studies (IES), UC Berkeley
- Abstract:
- This paper locates the collapse of East German communism in Marxist- Leninist monetary theory. By exploring the economic and cultural functions of money in East Germany, it argues that the communist party failed to reconcile its ideological aspirations - a society free of the social alienation represented by money and merchandise - with the practical exigencies of governing an industrial society by force. Using representative examples of market failure in production and consumption, the paper shows how the party's deep-seated hostility to money led to economic inefficiency and waste. Under Honecker, the party sought to improve living standards by trading political liberalization for West German money. Over time, however, this policy devalued the meaning of socialism by undermining the actual currency, facilitating the communist collapse and overdetermining the pace and mode of German unification.
- Topic:
- Communism and Economics
- Political Geography:
- Europe, Eastern Europe, Germany, and West Germany
363. The Italian Stabilization of 1947: Domestic and International Factors
- Author:
- Juan Carlos Martinez Oliva
- Publication Date:
- 05-2007
- Content Type:
- Working Paper
- Institution:
- Institute of European Studies (IES), UC Berkeley
- Abstract:
- The paper examines the 1947 monetary stabilization in Italy, tracing the domestic and international political dynamics that allowed ideas and theoretical concepts developed within the Bank of Italy to be applied in a successful action to subdue spiraling inflation. The combination of events and circumstances necessary for the good outcome in a critical juncture of Italian economic history was the fruit of the efforts made by Prime Minister Alcide De Gasperi in both the domestic and international political arenas and of the collaboration he received from Luigi Einaudi and Donato Menichella. The Government's economic action in this crucial episode constitutes perhaps the first outstanding example of cooperation between politicians and experts in the annals of the Italian Republic.
- Topic:
- Economics and Government
- Political Geography:
- Europe and Italy
364. Innovation and Adaptability in a Digital Era: How Wealthy Nations Stay Wealthy
- Author:
- Tobias Schulze-Cleven, Bartholemew C. Watson, and John Zysman
- Publication Date:
- 05-2007
- Content Type:
- Working Paper
- Institution:
- Berkeley Roundtable on the International Economy
- Abstract:
- The challenge for the advanced countries is to stay wealthy in a rapidly evolving and ever more competitive global economy. As a new digital era emerges and the mechanisms of value creation – i.e. the engines of productivity and growth – change in volatile marketplaces, wealthy nations have to find new ways to adapt. Particularly in Europe, successful adjustment has often been posed as a choice between social protection and market flexibility. In this paper, we recast this all too common framing and emphasize instead that competitive advantage for the advanced countries may be built through appropriate social policy. Upon clarifying the character of competition in the emerging digital era, we argue that the long-standing strong social protection systems particularly in many European countries could be leveraged to these countries' unique advantage in the emerging digital era. With such benefits as promoting social peace and assisting people in meeting new labour market demands, social protection systems have an important role to play in helping societies reorganize existing economic structures in support of successful adaptation to new competitive conditions.
- Topic:
- Economics, Globalization, International Political Economy, and Science and Technology
- Political Geography:
- Europe
365. The Politics of Antitrust and Merger Review in the European Union: Institutional Change and Decisions from Messina to 2004
- Author:
- Gabriel T. Swank and Tim Büthe
- Publication Date:
- 01-2007
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- Antitrust regulation and the related merger review are essential for making a market economy work. Merger review is also among the most prominent powers of the European Commission in the Common Market of the EU. How did this supranational actor come to acquire such power? And what explains the variation in the Commission's decisions in some of the trans-atlantically most controversial merger review cases in recent years? In this paper, we develop a modified neofunctionalist theory as a historical institutionalist theory of institutional change that integrates elements of rational choice and social constructivism. We argue that it provides a superior explanation of (1) the institutional development of the European Commission's competence over antitrust matters and merger review from the 1950s negotiations over the Treaty of Rome through the changes of 2004 and (2) the Commission's decisions in some of the most prominent cases, where a high level of politicization makes a neofunctionalist explanation least likely.
- Topic:
- International Relations, Economics, and Markets
- Political Geography:
- Europe
366. Why has Swedish Inflation been Persistently Low?
- Author:
- Felix Hufner
- Publication Date:
- 06-2007
- Content Type:
- Working Paper
- Institution:
- The Organisation for Economic Co-operation and Development
- Abstract:
- Average inflation in Sweden has been one of the lowest among European countries since the mid- 1990s. Three supply-side factors help to explain this phenomenon, all related in some sense to increased global integration. First, a shift towards imports from low-cost producing countries has resulted in falling import prices. Second, deregulation and increased product market competition with foreign companies entering the market has led to price falls in some sectors, notably in retailing. Third, wage growth has lagged productivity and kept unit labour costs down. This paper reviews these factors and analyzes the policy options for the central bank.
- Topic:
- Economics, Labor Issues, Monetary Policy, and Inflation
- Political Geography:
- Europe, Sweden, and Scandinavia
367. The Role of Architecture on Urban Revitalisation: The Case of Olympic Arenas in Berlin-Prenzlauer Berg
- Author:
- Gabriel Ahlfeldt and Wolfgang Maennig
- Publication Date:
- 05-2007
- Content Type:
- Working Paper
- Institution:
- Chair for Economic Policy, University of Hamburg
- Abstract:
- This paper investigates socioeconomic impacts of three multifunctional sports arenas situated in Berlin-Prenzlauer Berg, Germany. The three arenas were chosen for their potential to contribute to revitalisation of their economically deprived neighbourhoods. We employ a difference-in-differences approach to check for structural breaks in development of land values within areas of potential impact. Our results suggest that arenas emanate positive externalities and apparently have accelerated the process of gentrification going on in Prenzlauer Berg. However, evidence also supports concerns that congestion problems may adversely affect property values, at least when not addressed appropriately during planning.
- Topic:
- Economics, Architecture, Gentrification, and Stadiums
- Political Geography:
- Europe, Germany, and Berlin
368. The Impact of Sports Arenas on Land Values: Evidence from Berlin
- Author:
- Gabriel Ahlfeldt and Wolfgang Maennig
- Publication Date:
- 01-2007
- Content Type:
- Working Paper
- Institution:
- Chair for Economic Policy, University of Hamburg
- Abstract:
- This paper develops a hedonic price model explaining standard land values in Berlin. The model assesses the impact of three multifunc-tional sports arenas situated in Berlin-Prenzlauer Berg which were de-signed to improve the attractiveness of their formerly deprived neighbourhoods. Empirical results confirm expectations about the impact of various attributes on land values. Sports arenas have significant positive impacts within a radius of about 3000 meters. The patterns of impact vary, in-dicating that the effective impact depends on how planning authorities address potential countervailing negative externalities.
- Topic:
- Economics, Sports, and Land
- Political Geography:
- Europe, Germany, and Berlin
369. Shrinking and Growing Metropolitan Areas - Asymmetric Real Estate Price Reactions?
- Author:
- Lisa Dust and Wolfgang Maennig
- Publication Date:
- 01-2007
- Content Type:
- Working Paper
- Institution:
- Chair for Economic Policy, University of Hamburg
- Abstract:
- The population of Germany will be one of the first in the western hemisphere to undergo considerable permanent shrinkage. In view of the relatively low elasticities of supply and demand significant negative price reactions might be expected. This work supplements existing studies by estimating real estate prices for single-family homes on the disaggregate level of Germany’s metropolitan areas. It highlights asymmetric price reactions: growth in population numbers has no significant price effects, whereas declining population numbers lead to significant negative price effects.
- Topic:
- Demographics, Economics, Population, Real Estate, and Price
- Political Geography:
- Europe and Germany
370. Short-term to long-term employment effects of the Football World Cup 1974 in Germany
- Author:
- Florian Hagn and Wolfgang Maennig
- Publication Date:
- 06-2007
- Content Type:
- Working Paper
- Institution:
- Chair for Economic Policy, University of Hamburg
- Abstract:
- This study demonstrates that the Football World Cup 1974 in Germany was not able to generate any short to long-term employment effects that were significantly different from zero. It is the first work to examine long-term employment effects of Football World Cup tournaments. It is also one of the first work to undertake a multivariate analysis of the employment effects of a major sporting event outside of the USA. In addition, this study does not arbitrarily determine the time period for the potential positive effects of a major sporting event but instead examines several alternative periods. Furthermore, the study tests for method sensitivity by analysing the data set in parallel with the approaches used in the studies of sporting events in the USA as well as in a fourth modifying estimation approach. In contrast to the conclusions reached in comparable studies, the results are not regarded as a clear refutation of the positive effects of major sporting events.
- Topic:
- Economics, Employment, Sports, World Cup, and Stadiums
- Political Geography:
- Europe and Germany
371. One year later: A re-appraisal of the economics of the 2006 soccer World Cup
- Author:
- Wolfgang Maennig
- Publication Date:
- 06-2007
- Content Type:
- Working Paper
- Institution:
- Chair for Economic Policy, University of Hamburg
- Abstract:
- No two ways about it: the soccer World Cup competition in June 2006 in Germany was a great experience, not only for the soccer fans, and it still resonates far and wide. The various commentaries have all concluded that the economic effects were positive. Emphasis has often been placed on increased turnover in the retail trade, overnight accommodation, receipts from tourism and effects on employment. The present study shows that this reasoning is mostly of little value and may even be incorrect. Of more significance, however, are other (measurable) effects such as the novelty effect of the stadiums, the improved image for Germany and the feelgood effect for the population.
- Topic:
- Economics, Sports, World Cup, Regional Economy, and Stadiums
- Political Geography:
- Europe and Germany
372. The Relation between Democracy and Religion: Towards a European Discursive "Model";?
- Author:
- Camil Ungureanu
- Publication Date:
- 12-2006
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- In this paper we advance the argument that, under certain socio-political and cognitive conditions, the manifestation of religion in the opinion-oriented public spheres can have an inherent value for democratic life. However, it is only after processes of selective interpretation and transformation through inclusive discursive practices that religious semantic contents may legitimately influence decisional interpretations of constitutional principles and rights. This “model” draws on republicanism and deliberative democracy: given that these two conceptions do not start out from an abstract principle of liberty as non-interference but from a multidimensional conception of freedom embedded in various historical contexts of mutual recognition, they are more predisposed to provide conceptual resources for envisaging a discursive relation between democracy and religion.
- Topic:
- Democratization, Economics, Politics, and Religion
- Political Geography:
- Europe
373. Self-regulation in European Contract Law
- Author:
- Fabrizio Cafaggi
- Publication Date:
- 12-2006
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- This paper addresses self-regulation as a complementary means to harmonize and regulate European Contract Law. In the context of the paper SR is conceived as a complementary device to legislation and as a monitoring device to verify ECL implementation.
- Topic:
- Economics, Markets, and Politics
- Political Geography:
- Europe
374. State Sovereignty, Popular Sovereignty and Individual Sovereignty: from Constitutional Nationalism to Multilevel Constitutionalism in International Economic Law?
- Author:
- Ernst-Ulrich Petersmann
- Publication Date:
- 12-2006
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- This paper discusses the basic constitutional problem of modern international law since the UN Charter: How can the power-oriented international legal system based on “sovereign equality of states” be reconciled with the universal recognition of “inalienable” human rights deriving from respect for human dignity and popular sovereignty? State representatives, intergovernmental organizations, international judges and non-governmental organizations often express different views on how far the universal recognition of human rights has changed the subjects, structures, general principles, interpretative methods and “object and purpose” of international law (e.g. by the emergence of erga omnes obligations and jus cogens limiting state sovereignty to renounce human rights treaties, to refuse diplomatic protection of individuals abroad, or domestic implementation of international obligations for the benefit of domestic citizens). The paper explains why effective protection of human rights at home and abroad requires multilevel constitutional protection of individual rights as well as multilevel constitutional restraints of national, regional and worldwide governance powers and procedures. While all European states have accepted that the European Convention on Human Rights and EC law have evolved into international constitutional law, the prevailing paradigm for most states outside Europe remains “constitutional nationalism” rather than “multilevel constitutional pluralism.” Consequently, European proposals for reforms of international economic law often aim at “constitutional reforms” (e.g. of worldwide governance institutions) rather than only “administrative reforms”, as they are frequently favoured by non-European governments defending state sovereignty and popular sovereignty within a more power-oriented “international law among states.”
- Topic:
- Economics, Nationalism, Politics, and Sovereignty
- Political Geography:
- Europe and United Nations
375. Consumer Citizenship in Postnational Constellations?
- Author:
- Christian Joerges and Michelle Everson
- Publication Date:
- 12-2006
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- It is perhaps a truism to note that 'the consumer' is but a role that is played by human subjects. This insight leaves us, as lawyers, with one vital question: how can or does the legal system meaningfully rationalise its encounters with the consumer? Can it, and if so to what way, shape the act of consumption? Can it even ensure that the 'fact' of consumption translates into 'good' normative institutions.
- Topic:
- Economics, Globalization, and Politics
- Political Geography:
- Europe
376. Codecision and Institutional Change
- Author:
- Henry Farrell and Adrienne Héritier
- Publication Date:
- 12-2006
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- We examine the sources and processes of institutional change in one important aspect of EU politics—the legislative procedure of codecision and show how interstitial change of institutions emerges between formal Treaty revisions and under specific conditions may be formalized in subsequent formal Treaty reforms. We develop two related models of Treaty change. First, in a'simple' model, we argue that informal rules will be formalized in the Treaty text where all member states are in agreement, and will be rolled back when all member states oppose them; otherwise they will continue in existence at the informal level. Second, in a more complex framework, we argue that actors who have effective veto powers in a related arena may make credible threats that allow them to press member states into formalizing informal rules, provided that member states are not unanimously opposed to this formalization. We empirically assess our claims in the light of several instances of informal rules applied in the codecision procedure.
- Topic:
- Development, Economics, and Politics
- Political Geography:
- Europe
377. One Path or Several? Understanding the Varied Development of Tripartism in New European Capitalisms
- Author:
- Sabina Avdagic
- Publication Date:
- 11-2006
- Content Type:
- Working Paper
- Institution:
- European Research Papers Archive
- Abstract:
- Are newly established institutions capable of shaping actors' strategies and coordinating behavior on a single path? Contrary to punctuated equilibrium analyses, this paper suggests that the constraining capacity of a range of newly established institutions in new European capitalisms is weak and that their very interpretation is subject to contention. Focusing on peak-level tripartism – a formally similar institution whose functioning has varied across national contexts – this paper proposes an actor-centered framework to elucidate the logic and consequences of actors' ongoing strategic maneuvering for the interpretation, enactment, and development of these young institutions. Combining insights of rational choice and historical institutionalism, the paper develops a heuristic model which, by focusing on strategic choices of government officials and union leaders, links the varied enactment of tripartism to different power balances that become mutually accepted in the course of their repeated interactions. In offering a set of falsifiable propositions, the paper provides a guideline for building analytical narratives to evaluate empirically this model.
- Topic:
- Development, Economics, and Government
- Political Geography:
- Europe
378. Ten years of the Euro-Mediterranean Partnership - accomplishments and prospects
- Author:
- Agata Kołakowska
- Publication Date:
- 10-2006
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- Ever since the European Economic Community came into being in the late 1950s, the member countries have always shared a belief that development of economic cooperation, especially through trade, is crucial to fostering good relations with Arab world nations. It was, however, essential to define the kind of cooperation that was to be pursued with countries which were then French colonies and enjoyed trade privileges. The first association agreements were concluded with the three Maghreb states in 1969. As time went by the EEC hammered out a more integrated approach to the non-member countries of the Mediterranean Basin with cooperation focussed on economic and development-related matters—a policy that chimed with the expectations of all the partners. The idea of framing a long-range plan to establish a free-trade area was grounded in a belief in the necessity of enhancing mutual relations in fields that were likely to yield the biggest benefits.
- Topic:
- Economics, International Trade and Finance, and Regional Cooperation
- Political Geography:
- Europe
379. Advancing Economic Growth: Investing in Health
- Author:
- Rifat A Atun and Susan Fitzpatrick
- Publication Date:
- 02-2006
- Content Type:
- Working Paper
- Institution:
- Chatham House
- Abstract:
- The traditional view of the relationship between economic growth and health had emphasized the impact of economic growth on improved health. However, from the beginning of the 'human capital' revolution in economics, there was a conceptual base that health is a core contributor to an individual's human capital, while health care is clearly a desired consumption good. Now, there is strong empirical evidence from both developing and developed countries which demonstrates the two-way relationship: that economic growth improves health but improved health also significantly enhances economic productivity and growth. In fact, it is not an exaggeration to say that no society has seen sustained economic progress when it has neglected investment in its people's education and health.
- Topic:
- Economics and Health
- Political Geography:
- Europe
380. The State of American Cities
- Author:
- Bruce Katz and Alan Berube
- Publication Date:
- 11-2006
- Content Type:
- Working Paper
- Institution:
- The Brookings Institution
- Abstract:
- This summary report provides an overview of The State of American Cities. It addresses four major questions that are explored in further detail in the topic report: What are the current trends and drivers of change in US cities? What factors measure and explain city success in the U.S? What policies have promoted the success of US cities? What can English cities learn from this? The report argues that whilst the US and England are marked by significant cultural and political differences in their views on cities, the two nations are undergoing similar economic and demographic transitions that pave the way for a useful comparative policy dialogue on urban areas.
- Topic:
- Civil Society and Economics
- Political Geography:
- United States, United Kingdom, America, Europe, and England
381. Intellectual Property Rights as a Key Obstacle to Russia's WTO Accession
- Author:
- Matthew Ocheltree and Sherman Katz
- Publication Date:
- 10-2006
- Content Type:
- Working Paper
- Institution:
- Carnegie Endowment for International Peace
- Abstract:
- Russia has been in the process of seeking membership in the World Trade Organization (WTO) since June 1993. Currently, the United States is the only major economic power that has yet to finalize a bilateral market access agreement with the Russian Federation. Most observers of the situation concur that the enforcement of intellectual property rights laws remains, along with agriculture, one of the two major hurdles to Russian accession to the World Trade Organization.
- Topic:
- International Relations, Economics, and International Trade and Finance
- Political Geography:
- Russia, United States, Europe, and Asia
382. Mad Cows and Ailing Hens: The Transatlantic Relationship and Livestock Diseases
- Author:
- Kate O'Neill
- Publication Date:
- 05-2006
- Content Type:
- Working Paper
- Institution:
- Institute of European Studies (IES), UC Berkeley
- Abstract:
- This paper examines how the emergence and spread of animal diseases such as bovine spongiform encephalopathy (BSE, or “mad cow disease”) or avian influenza have shaped the dynamics of transatlantic trade in live animals and meat products. It then compares the responses of the US and the EU, respectively, to looming, potentially long-term threats of epidemics to human and animal health, focusing particularly on recent outbreaks BSE and avian flu. It documents what appears to be a shift away from a sole reliance on trade embargoes to protect animal and public health from disease outbreaks to deeper, institutional responses on the part of the US and EU respectively. However, while it appears that the EU is learning from the US public health establishment, there is little evidence of transatlantic cooperation in this area.
- Topic:
- International Relations, Disaster Relief, Economics, and Health
- Political Geography:
- United States and Europe
383. A Policymakers' Guide to Dutch Disease
- Author:
- Owen Barder
- Publication Date:
- 07-2006
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- It is sometimes claimed that an increase in aid might cause Dutch Disease—that is, an appreciation of the real exchange rate which can slow the growth of a country's exports— and that aid increases might thereby harm a country's long-term growth prospects. This essay argues that it is unlikely that a long-term, sustained and predictable increase in aid would, through the impact on the real exchange rate, do more harm than good, for three reasons. First, there is not necessarily an adverse impact on exports from Dutch Disease, and any impact on economic growth may be small. Second, aid spent in part on improving the supply side—investments in infrastructure, education, government institutions and health—result in productivity benefits for the whole economy, which can offset any loss of competitiveness from the Dutch Disease effect. Third, the welfare of a nation's citizens depends on their consumption and investment, not just output. Even on pessimistic assumptions, the additional consumption and investment which the aid finances is larger than any likely adverse impact on output. However, the macroeconomic effects of aid can cause substantial harm if the aid is not sustained until its benefits are realized. The costs of a temporary loss of competitiveness might well exceed the benefits of the short-term increase in aid. To avoid doing harm, aid should be sustained and predictable, and used in part to promote economic growth. This maximizes the chances that the long-term productivity and growth benefits will offset the adverse effects—which may be small if they exist at all—that big aid surges may pose as a result of Dutch Disease.
- Topic:
- Economics, Health, and Humanitarian Aid
- Political Geography:
- Europe
384. Central Asia: What Role for the European Union?
- Publication Date:
- 04-2006
- Content Type:
- Working Paper
- Institution:
- International Crisis Group
- Abstract:
- The European Union is not living up to its potential as a geopolitical actor in Central Asia. The level of EU interest has been low, and Brussels is doing little to shape developments in a region that has mostly seen marked declines in its economic fortunes, political freedoms and social development in recent years but remains of considerable strategic significance. If this is to change, Europe must move away from largely unsuccessful policies, particularly the promotion of region-wide projects, and take on a more focused and active role geared to the distinct characteristics of each of the region's five states. It needs also to raise the level of its representation, spend more money and stick to its political ideals if it is to have a positive impact.
- Topic:
- Economics
- Political Geography:
- Europe, Central Asia, and Asia
385. Trade Policy Lobbying in the European Union: Who Captures Whom?
- Author:
- Cornelia Woll
- Publication Date:
- 10-2006
- Content Type:
- Working Paper
- Institution:
- Max Planck Institute for the Study of Societies
- Abstract:
- What role do firms play in the making of EU trade policy? This article surveys the policy domain and lays out the instruments firms can employ to influence decisions on trade. It underlines that European trade policy is characterized by a high degree of institutional complexity, which firms have to manage in order to be successful. In particular, the European Commission works intensively to solicit business input in order to gain bargaining leverage vis-á-vis third countries and the EU member states. This reverse lobbying creates a two-channel logic of trade policy lobbying in the EU. Corporate actors have a very good chance of working closely with the European Commission if they can propose pan-European trade policy solutions. This can be either trade liberalization or EU-wide regulatory restrictions on trade. Demands for traditional protectionist measures, especially those that reveal national interest divergences, are difficult to defend at the supranational level. Protectionist lobbying therefore goes through the national route, with corporate actors working to block liberalization by affecting the consensus in the Council of Ministers. The chapter illustrates this two-channel logic by studying business—government interactions in agricultural trade, textiles and clothing, financial services, and telecommunication services.
- Topic:
- Economics, Government, and Political Economy
- Political Geography:
- Europe
386. OECD Territorial Reviews: Milan, Italy
- Publication Date:
- 11-2006
- Content Type:
- Working Paper
- Institution:
- The Organisation for Economic Co-operation and Development
- Abstract:
- Milan ranks among wealthy OECD metropolitan regions and is often identified with the “Made in Italy” brand on the international arena, notably for fashion and design. Once a successful industrial city, Milan has grown into the core of a wider industrial metropolitan region that is home to more than 7 million people. Industrial activities still drive the region's periphery while the centre of Milan is veering towards becoming a service platform for a significant share of northern Italy. Milan's historical skills endowment and its advantageous geographic location could underpin its ambition to become a southern European and Mediterranean capital, supplying advanced services and new technologies while remaining an international capital of fashion and design.
- Topic:
- Economics, International Trade and Finance, and Markets
- Political Geography:
- Europe and Italy
387. Long-Run Changes in the Concentration of Wealth: An Overview of Recent Findings
- Author:
- Daniel Waldenström, Jesper Roine, and Henry Ohlsson
- Publication Date:
- 09-2006
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- The objective of this paper is to study the dynamics of the wealth distribution over the path of economic development. More specifically, we are interested in distinguishing between changes which seem to be country specific and characteristics shared by all countries. A historical account of the evolution of the wealth distribution in developed countries is interesting in itself, but it can also hold implications for countries that are currently in an early stage of development or in transition. The data used originates from the taxation of wealth and estates.
- Topic:
- International Relations, Demographics, and Economics
- Political Geography:
- Europe
388. Institutions and Economic Growth: The Successful Experience of Switzerland (1870-1950)
- Author:
- André Mach and Thomas David
- Publication Date:
- 09-2006
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- This research paper discusses the role of institutions in the rapid growth and successful international integration of Switzerland during the late nineteenth and early twentieth century. In analysing the emergence and consolidation of the institutions whose existence was crucial, the paper looks both at the political institutions that managed conflicts and promoted cooperation between private and public actors and the economic institutions that, on the one hand, compensated the groups that fell behind in the developmental process (e.g., agricultural subsidies, high tolerance for domestic cartels, tariffs for some industries, institutions for labour representation) and, on the other hand, enhanced productivity. In addition, the absence of some institutions such as a patent law and an independent central bank was also crucial in the Swiss case, even though these two institutions are regarded as pre-requisites of development by today's economic orthodoxy. The paper concludes by drawing lessons for today's developing countries.
- Topic:
- International Relations, Development, and Economics
- Political Geography:
- Europe and Switzerland
389. The Formation of a Mercantilist State and the Economic Growth of the United Kingdom 1453-1815
- Author:
- Patrick Karl O'Brien
- Publication Date:
- 07-2006
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- New institutional economics lacks a theory of state formation which could help us to deal with the mega question of why some states became more efficient than others at establishing and and sustaining institutions. Some kind of middle range theory could be formulated based upon historical case studies. This paper considers the case of Britain and as its title suggests degrades the myth of the United Kingdom as the paradigmn example of liberalism and laisser faire. In making its precocious transition to and industrial market economy the kingom's history is best represented as a case of successful mercantilism.
- Topic:
- Development, Economics, and Sovereignty
- Political Geography:
- Britain, United Kingdom, and Europe
390. Central Banks as Agents of Economic Development
- Author:
- Gerald Epstein
- Publication Date:
- 05-2006
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- In the last two decades, there has been a global sea change in the theory and practice of central banking. The currently dominant 'best practice' approach to central banking consists of the following: (1) central bank independence (2) a focus on inflation fighting (including adopting formal 'inflation targeting') and (3) the use of indirect methods of monetary policy (that is, short-term interest rates as opposed to direct methods such as credit ceilings). This paper argues that this neo-liberal approach to central banking is highly idiosyncratic in that, as a package, it is dramatically different from the historically dominant theory and practice of central banking, not only in the developing world, but, notably, in the now developed countries themselves. Throughout the early and recent history of central banking in the US, England, Europe, and elsewhere, financing governments, managing exchange rates, and supporting economic sectors by using 'direct methods' of intervention have been among the most important tasks of central banking and, indeed, in many cases, were among the reasons for their existence. The neo-liberal central bank policy package, then, is drastically out of step with the history and dominant practice of central banking throughout most of its history.
- Topic:
- Development and Economics
- Political Geography:
- United States, Europe, and England
391. Measuring Pro-Poor Progress towards the Non-Income Millennium Development Goals
- Author:
- Stephen Klasen, Kenneth Harttgen, and Melanie Grosse
- Publication Date:
- 04-2006
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- In order to track progress in MDG1 and explicitly link growth, inequality, and poverty reduction, several measures of 'pro-poor growth' have been proposed in the literature and used in applied academic and policy work. These measures, particularly the ones derived from the growth incidence curve, allow a much more detailed assessment of the distributional impact of growth and its link to poverty reduction. However, there are no corresponding measures for tracking the distribution of progress in non-income dimensions of poverty, and thus the distribution of progress towards MDGs 2-7. In this paper, we propose to extend the pro-poor growth measurement to non-income dimensions of poverty (particularly health and education). We empirically illustrate the approach for Bolivia and show that it allows a much more detailed assessment of progress towards MDGs 2-7 by focusing on the distribution of progress. Furthermore, this extension also allows an explicit assessment of the linkage between progress in MDG1 and MDGs 2-7 as well as extends traditional incidence analysis by quantifying outcomes in non-income dimensions of poverty along the income distribution.
- Topic:
- Development, Economics, and Poverty
- Political Geography:
- Europe and Bolivia
392. Corruption and Inequality
- Author:
- Eric M. Uslaner
- Publication Date:
- 04-2006
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- Economic inequality provides a fertile breeding ground for corruption and, in turn, leads to further inequalities. Most corruption models focus on the institutional determinants of government dishonesty. However, such accounts are problematic. Corruption is remarkably sticky over time. There is a very powerful correlation between crossnational measures corruption in 1980 and in 2004. In contrast, measures of democracy such as the Freedom House scores are not so strongly correlated over time, and changes in corruption are unrelated to changes in institutional design. On the other hand, inequality and trust-like corruption are also sticky over time. The connection between inequality and the quality of government is not necessarily so simple. The aggregate relationships between inequality and corruption are not strong. The path from inequality to corruption may be indirect, through generalized trust, but the connection is key to understanding why some societies are more corrupt than others. This study estimates a simultaneous equation model of trust, corruption, perceptions of inequality, confidence in government, and demands for redistribution in Romania, and shows that perceptions of rising inequality and corruption lead to lower levels of trust and demands for redistribution.
- Topic:
- Corruption, Economics, and Government
- Political Geography:
- Europe
393. Europe's Financial Perspectives in Perspective
- Author:
- Paul Veenendaal, Herman Stolwijk, and George Gelauff
- Publication Date:
- 04-2006
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- The budget of the European Union nearly always raises much commotion. Many member states anxiously guard their net payment positions: don't they pay too much for the EU compared to what they receive from the EU? Yet, from an economic perspective the subsidiarity principle is much more important: Should the funds be allocated by the Union or by the individual member states? From that angle, a number of fundamental reforms of European agricultural policy and structural actions (support to lagging regions) suggest themselves. These reform options may more than halve the EU budget. In addition they happen to bring the net payment positions of member states closer together.
- Topic:
- Agriculture, Economics, and Treaties and Agreements
- Political Geography:
- Europe
394. The Trade-Induced Effects of the Services Directive and the Country-of-Origin Principle
- Author:
- Arjan Lejour, Henk Kox, and Roland de Bruijn
- Publication Date:
- 04-2006
- Content Type:
- Working Paper
- Institution:
- Centre for European Policy Studies (CEPS)
- Abstract:
- The proposed ServicIn March 2004, the European Commission proposed a directive on the internal market in services. Its aim is to boost the EU's internal market in services by reducing regulation-based impediments to trade and investment in services. A previous CPB study The free movement of services within the EU concluded that bilateral trade in commercial services may increase by 30-60 per cent. This equals an increase of total intra-EU trade (i.e. including trade in goods) of 2 to 5 per cent. For foreign direct investment in commercial services the EU proposal may lead to an increase by 20 per cent to 35 per cent.
- Topic:
- Economics, Regional Cooperation, and Treaties and Agreements
- Political Geography:
- Europe
395. Has EMU Had Any Impact on the Degree of Wage Restraint?
- Author:
- Adam S. Posen and Daniel Popov Gould
- Publication Date:
- 08-2006
- Content Type:
- Working Paper
- Institution:
- Peterson Institute for International Economics
- Abstract:
- This working paper investigates the European Monetary Unification's (EMU) effect on wage restraint—the degree to which wage increases do or do not exceed productivity growth. We find in cross-sectional investigations that wage restraint either is unchanged or has increased following EMU in the vast majority of countries. This finding contradicts the predictions of a widely cited family of models of coordination of labor market bargaining. In particular, one would have expected Germany to display the greatest decline in wage restraint post-EMU under these models, but in our time-series analysis we find no indication of such a decline. The overall shift toward greater wage restraint is consistent with the models that emphasize the gains from monetary credibility. The time-series evidence on Italy, which shows a significant increase in wage restraint after eurozone entry, also supports this view. That said, the increase in wage restraint in the eurozone is matched by that associated with the increase in credibility seen in the United Kingdom and Sweden after their adoption of inflation targeting post-1992.
- Topic:
- Economics and International Trade and Finance
- Political Geography:
- United Kingdom, Europe, Germany, and Sweden
396. The United States Needs German Economic Leadership
- Author:
- Adam S. Posen
- Publication Date:
- 01-2006
- Content Type:
- Working Paper
- Institution:
- Peterson Institute for International Economics
- Abstract:
- On January 13, Germany's new chancellor, Angela Merkel, will have her first official visit with US President George W. Bush. Washington, or at least the part of Washington that still pays attention to transatlantic issues, not just the Bush administration, will be glad to see her given that she is not her US-bashing predecessor Gerhard Schroeder. Though this change in atmosphere is welcome, no one should make too much of it. It is unlikely to make much difference on security issues, where Iran's own actions are forcing the United States and Germany to come together, where German public opinion will keep the governments apart on Iraq, and where neither country is prepared to make major changes to defense budgets and approaches. The Masri case will certainly limit Merkel's interest in appearing too chummy with Bush on security matters.
- Topic:
- Development and Economics
- Political Geography:
- United States, Iraq, Europe, Iran, Washington, and Germany
397. From Competition to Constitution: Races to Bottoms and the Rise of "Shadow" Social Europe
- Author:
- Éloi Laurent
- Publication Date:
- 08-2006
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- In this paper, I examine how the specific nature of economic integration in the European Union has affected member states' redistribution policies over the last two decades. More precisely, I attempt to detail the effect of social-tax competition between member states within social models, processes that I label “races to bottoms.” In this framework, I identify the emergence of an informal set of rules effectively constraining national redistribution policies in different ways, given the diversity of tax-social compacts in the EU. Because these rules are implicit and their effect generally underestimated, I gather them under the notion of “shadow” social Europe. Having empirically assessed the impact of this dynamic on the “continental,” the “Nordic,” the “eastern” and the “liberal” social-tax compact, I finally try to present a normative perspective and some policy options on this matter.
- Topic:
- Development, Economics, and Government
- Political Geography:
- Europe
398. Natural Unemployment, the Role of Monetary Policy and Wage Bargaining: A Theoretical Perspective
- Author:
- Stefan Collignon
- Publication Date:
- 05-2006
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- This paper models unemployment as a general equilibrium solution in labor and capital markets, while the natural rate hypothesis explains unemployment simply as a partial equilibrium in the labor market. It is shown that monetary policy can have long-run effects by affecting required returns on capital and investment. If monetary policy is primarily concerned with maintaining price stability, the interaction between wage bargaining and the central bank's credibility as an inflation fighter becomes a crucial factor in determining employment. Different labor market institutions condition different monetary policy reactions. With centralized wage bargaining, a central bank mandate focusing primarily on price stability is sufficient. With an atomistic labor market, the central bank must also consider output as a policy objective.
- Topic:
- Civil Society, Development, Economics, and Markets
- Political Geography:
- United States, United Kingdom, and Europe
399. The Socioeconomic Diversity of European Regions
- Author:
- JoãoOliveira Soares, Carlos M.F. Monteiro, and Cristina del Campo
- Publication Date:
- 05-2006
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- It is well-known that there are significant differences among the European Union regions, which have been heightened due to the most recent enlargement in 2004. This paper aims to analyze this diversity and propose a classification of European Regions (EU) that is adjusted to the different axes of socioeconomic development and, simultaneously, is useful for European regional policy purposes. The data used in this paper were published by the European Union Statistical Office (Eurostat) and correspond to the main statistical indicators of NUTS2 (Nomenclature of Territorial Units for Statistics) regions in the EU. Multivariate statistical techniques allowed the identification of clusters of socioeconomic similarity, which are contrasted with the classes considered in the financial proposal of the European Commission (EC) for the period 2007-2013. It was found that each of the two main groups of the EC classification – convergence regions and competitiveness and employment regions – comprises at least two significantly different groups of regions, which differ not only in their average income but also in other indicators associated with their particular weaknesses. Also, it has been revealed that two other groups–phasing-in regions and phasing-out regions –, beyond their inexpressive denomination, lack homogeneity, being spread throughout different clusters.
- Topic:
- Demographics, Development, and Economics
- Political Geography:
- Europe
400. Big Cuts, Little Time: Welfare State Retrenchment in Sweden
- Author:
- Carl Dahlström
- Publication Date:
- 02-2006
- Content Type:
- Working Paper
- Institution:
- Minda de Gunzburg Center for European Studies, Harvard University
- Abstract:
- When harsh cuts were introduced in the Swedish welfare state in an agreement between the centre-right government and the opposition Social Democrats in 1992, there were astonishingly few disagreements between the political parties as to which social groups should carry the burdens of the cuts. The conventional wisdom on welfare state retrenchment would lead us to expect a clash of interests, especially considering the strength of interest groups in Sweden and the different constituencies of the five parties included in the agreement. This paper explains why that did not happen. It argues that the role that key officials played in shaping the 1992 retrenchment agreement in Sweden was decisive in averting potential political conflicts. In a crisis, politicians depend on advice from officials as politicians need complex information, often under pressure of time. This paper argues that key state officials, through their advice, defined both the character of the crisis and the range of possible solutions. As the number of options was restricted, key officials were able to define what cuts were reasonable. Within this framework, politicians looked for practical solutions and, to a large extent, disregarded conflicts of interest. This paper also suggests that the content of such advice depends on what is called the loyalty of key officials, which depends on the terms of their employment.
- Topic:
- Development, Economics, and Human Welfare
- Political Geography:
- Europe